Simmons Company Has the Following Information Available for Variable Overhead

question 140

Multiple Choice

Simmons Company has the following information available for variable overhead costs.Direct labor hours are the cost driver for variable overhead costs.
$\begin{array}{ll}\text { Actual variable overhead costs } & \$ 4,700 \\\text { Standard variable overhead costs } & \$ 1.20 \text { per hour } \\\text { Actual direct labor hours } & 3,750 \text { hours } \\\text { Standard direct labor hours per unit } & 5 \text { hours } \\\text { Units produced } & 700\end{array}$
What is the variable overhead spending variance?

• A) $200 Favorable
• B) $200 Unfavorable
• C) $500 Favorable
• D) $500 Unfavorable

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Definitions:

Ecocentrists

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Earth Principle

Fundamental concepts or assumptions underlying the study and management of the Earth's environments and resources.